Allowance

Allowance

• A. Labor Cost Accounting
• B. Cost Report
• C. Allowance
• D. Cost Management

Answer: (C)

Allowance is the term that names a reduction or credit applied to costs. In cost controls, an allowance represents a negotiated deduction from the gross cost or price—such as supplier credits for damaged goods, returns, or price concessions—which lowers the net cost recorded. This makes it a specific adjustment term, distinct from broader concepts like tracking labor costs (labor cost accounting), producing a summary of costs (cost report), or the overall practice of planning and controlling costs (cost management).

Allowance is the term that names a reduction or credit applied to costs. In cost controls, an allowance represents a negotiated deduction from the gross cost or price—such as supplier credits for damaged goods, returns, or price concessions—which lowers the net cost recorded. This makes it a specific adjustment term, distinct from broader concepts like tracking labor costs (labor cost accounting), producing a summary of costs (cost report), or the overall practice of planning and controlling costs (cost management).